Swings in the US dollar have no long-term impact in the price of gold. Nor is gold an inflation hedge. Three Points • December 2004: US Dollar Index 108, Gold $435 • April 2009: US Dollar Index 108, Gold $883 • November 2014: US Dollar Index 108, Gold $1182 Gold vs Trade-Weighted Dollar Index 1973-Present {image} While gold generally moves opposite the dollar in day-to-day fluctuations, long term impacts are nonexistent. Here is the chart with the index of gold and the dollar set to the same base year, 1997. Gold vs Trade-Weighted Dollar Index {image} Gold vs the CPI {image} Gold fell from $850 to $250 from 1980 to ... (full story)